AsemconnectVietnam - Kien Giang Construction Investment Consultancy Group Joint Stock Company (CIC Group - stock code CKG) said that the Northwest new urban area project is expected to contribute the majority of revenue to CIC Group. This is also a project that has brought many successes to CIC Group in recent years thanks to targeting the right housing segment suitable for the needs of people in Rach Gia City.

According to the financial report for the second quarter of 2024, CKG recorded net revenue of VND263 billion, down 29.5% over the same period. Gross profit was more than VND87 billion, equivalent to a profit margin of more than 33%, slightly higher than the 30% level in the second quarter of 2023.
According to CKG, during the period, revenue from social housing projects accounted for over 63% of total revenue, but the selling price of social housing was lower than that of commercial housing, and according to regulations on selling prices of social housing, profits do not exceed 10% of investment costs. Therefore, the profit margin of social housing projects reduced the company's overall profit.
Expenses during the period, including financial expenses and sales expenses decreased slightly, while business management expenses increased sharply to VND39.4 billion, an increase of 64%. According to the explanation, in the first half of the year, the cost of provisions for receivables increased, and the company made additional provisions for overdue customer debts from 6 months to 1 year.
The result was a profit after tax of VND25.3 billion, down 59% compared to the same period.
Accumulated for 6 months, the company recorded net revenue of VND544 billion, after-tax profit of nearly VND52 billion, down 34% compared to the first half of 2023.
As of June 30, 2024, CKG's total assets did not change much, recording VND4,745 billion, accounting for a large proportion of inventory of VND3,011 billion, an increase of VND100 billion compared to the beginning of the year. And short-term receivables were more than VND739.5 billion.
In the capital structure, prepayments from buyers were recorded at nearly VND44 billion, double that of the beginning of the year. Short-term debt was more than VND1,573.4 billion, an increase of VND 250 billion compared to the beginning of the year, long-term debt was VND 368.5 billion. Owner's equity was VND1,403 billion.
According to CKG's 2024 revenue plan approved by the General Meeting of Shareholders, it is VND1,220 billion, of which real estate revenue accounts for 95%. Specifically, the projects that the company is implementing for sale in 2024 include the An Binh project, Nam An Hoa, the Northwest new urban area in Rach Gia City and the Rivera Villas project in Phu Quoc.
Of which, the Northwest new urban area project is expected to contribute the majority of revenue to CIC Group. This is also a project that has brought many successes to CIC Group in recent years thanks to targeting the right housing segment suitable for the needs of people in Rach Gia City.
It is known that the project has a scale of 99.4 hectares, a total investment of VND3,714 billion, including 440 commercial plots and 1,469 houses including 1-ground-floor-1-floor townhouses, 1-ground-floor-2-floor townhouses, and villas to serve diverse needs.
In addition, CIC Group also has 3 major transitional projects for 2025 and the following years in Rach Gia City, which are the Bac Vinh Quang project, Road No. 2 and Rach Gia Agricultural and Seafood Market. It is expected to supply the market with nearly 1,800 products with diverse segments to suit the needs.
In particular, the Bac Vinh Quang project has a scale of 25.2 hectares divided into 03 implementation phases. The project has a total of more than 1,100 housing products and many internal utility works.
The Road No. 2 residential project has an area of 10.69 hectares, the road length is 2,000m, the total investment is 760 billion VND, and was officially started on April 27, 2018. This is one of the residential routes planned for new investment and construction to gradually complete the infrastructure system of Vinh Quang ward, Rach Gia City.
Regarding CKG shares, they are currently at 24,000 VND/share, up 27% in the most recent quarter with an average liquidity of more than 200,000 units/session.
Recently, according to the information announcement, Mr. Dinh Thanh Tam, Vice Chairman of the Board of Directors of CKG, successfully purchased an additional 5 million shares, thereby owning 5.25% of capital, becoming a major shareholder of CKG.
N.Nga
Source: VITIC/Tinnhanhchungkhoan